Source · Select Committees · Business and Trade Committee
Recommendation 32
32
Deferred
Paragraph: 152
Outline plans for blue hydrogen to address warming effect of emissions and methane leakage
Conclusion
Blue hydrogen may have value as a transitional measure which builds a market for hydrogen and provides supply over the shorter term. However, excess reliance on blue hydrogen could leave the UK exposed to volatile international gas prices and risk increasing greenhouse gas emissions due to the threat of methane leakage. In response to this report, we ask that the Government sets out how its plans for blue hydrogen will address recent evidence that hydrogen emissions escaping from gas pipelines have a stronger warming effect in the atmosphere than previously thought. It should include in that response an account of how it will ensure that efforts to constrain and monitor methane leakage at point of extraction, transportation and storage are robust.
Government Response Summary
The government's response focuses entirely on improving electricity network connections and reducing connection timescales, including an upcoming Connections Action Plan, without addressing the committee's questions about blue hydrogen, hydrogen emissions, or methane leakage.
Paragraph Reference:
152
Government Response
Deferred
HM Government
Deferred
102. World-leading investment in renewable generation in the UK has meant network operators have experienced record demand for connections to the electricity network and reducing connection timescales is a high priority for Government. Decarbonisation of the power sector: Government Response 21 103. For transmission network connections, the ESO is leading work on modifications to the Connection and Use of System Code that would allow enforceable milestones to be inserted into transmission connection agreements4. The ESO expects to put proposals to Ofgem for a decision in June 2023. Distribution network operators (DNOs) have been inserting enforceable milestones into connection agreements since 2017. DNOs are now identifying connection agreements prior to 2017 that are still in the connection queue, to insert milestones or remove the projects from the queue5. Ofgem has published its support for this action as part of its Open Letter on connections reform6. 104. More widely, the Government is working with Ofgem and network companies to release network capacity and to improve the connection process in order to reduce connection timescales. This includes improving processes at the transmission and distribution interface, such as how the impact of distribution connections on the transmission network is assessed, to remove, or reduce, dependency on the transmission network for distribution network connections. Details are available on the ESO7 and Energy Network Association8 websites. Actions by the ESO alone are expected to see a reduction in transmission connection timescales of 2–10 years, for the majority of existing projects9. In addition, the Government has committed to publishing a Connections Action Plan10, jointly with Ofgem, in the summer, which will set out actions to reduce connection timescales and build on the existing work.